Industry & Policy

California Will Fine Influencers Up to $5,000 Per Undisclosed Political Ad

New California law will penalize influencers who don’t disclose political ads
New California law will penalize influencers who don’t disclose political adsAI-generated

Gov. Newsom signed AB 1130, letting California regulators fine influencers $5,000 per violation for undisclosed paid political posts, with possible misdemeanor referrals.

By Nathan Brooks

2 min read

At a glance

  • California's AB 1130 allows regulators to fine influencers up to $5,000 per violation for undisclosed paid political posts.
  • Regulators can refer violators to law enforcement for potential misdemeanor charges; the prior rule had no penalties.
  • Texas also requires disclosure for paid political content, and other states are considering similar regulations.

California regulators can now fine influencers up to $5,000 for each violation when they post paid political content without disclosing the payment. Governor Gavin Newsom signed the bill, AB 1130, adding financial and criminal consequences to a disclosure rule that previously carried no penalties at all.

The gap the law closes was real. California already required influencers to disclose paid posts about state and local races, but a creator who ignored the requirement faced no fines and no criminal exposure. The New York Times reports that under the new statute, regulators can also refer violators to law enforcement for potential misdemeanor charges.

Texas already mandates disclosure for paid political content, and other states are weighing similar regulations — a signal that campaign teams and creator partners should treat political disclosure as a multi-state compliance question, not a California-only one.

The enforcement backdrop matters for anyone planning influencer budgets around elections. According to the NYT, billionaire Tom Steyer, who unsuccessfully campaigned for the Democratic nomination for California governor earlier this year, paid dozens of influencers to post about his campaign online. Many of them did not initially disclose the payments — exactly the behavior AB 1130 now makes expensive.

For practitioners, the arithmetic changes. A campaign running 50 paid creator posts with sloppy disclosure language now faces a theoretical exposure of $250,000 in fines, plus referral risk. Compliance costs — clear #ad or paid-partnership labels, written contracts specifying disclosure, and audit trails of what each creator posted — are now trivially cheap by comparison.

Newsom signed the legislation as part of a broader package of bills that his office said will protect against potential election interference from President Donald Trump. That framing signals the political intent behind the enforcement push, though the bill's mechanics apply to any paid political posting, regardless of party.

The bill's sponsor, Democratic Assemblyman Marc Berman, said he introduced the bill after realizing there was "a bit of ambiguity about the [existing] law and how it's enforced." AB 1130 removes that ambiguity with a specific number: $5,000 per violation.

Whether other states follow with their own penalty regimes — and whether the FTC moves to tighten its own endorsement rules in parallel — will determine whether political influencer marketing settles into a standardized disclosure practice or a patchwork of state-by-state fines.

Original: nytimes.com

Nathan Brooks

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Staff writer covering companies, deals and strategy in Social platform news and policy at Reach Brief.

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